The inquiry has also heard allegations Mr Macdonald had been offered millions in kickbacks for various projects.

Ian Macdonald yesterday said he did not know Eddie Obeid owned land under a mining tenement he created in the Bylong Valley, in the Upper Hunter, and said he became upset with Mr Obeid after reading about it in a newspaper.

He also denied rigging the tender process.

When asked to explain why he still tried to do business with the Obeids after he found out, and why they let him stay at their ski lodge for free and paid his $800 food bill Ian Macdonald said it was 'hospitality'.

When the Counsel-Assisting put to Ian Macdonald that he was a crook he replied, "that's an absolute lie."

He said he gave Eddie Obeid's son Moses a list of mining company names in good faith.

The Counsel-Assisting has put almost 40 points of coincidence to Mr Macdonald which allegedly showed that the deal was corrupt.

During some tense exchanges, the former minister was reprimanded by the Commissioner for not answering questions with a simple yes or no.